Phase Forward Incorporated (NASDAQ: PFWD) today announced its financial results for the first quarter of 2010.
For the first quarter of 2010, GAAP revenues were $57.2 million, a 17% increase from $48.8 million in the first quarter of 2009. GAAP income from operations was $3.1 million for the first quarter of 2010, compared to $5.2 million in the first quarter of 2009. GAAP net income for the period was $1.9 million, or $0.05 per diluted share, compared to GAAP net income of $4.1 million, or $0.09 per diluted share in the first quarter of 2009.
Non-GAAP revenues were $57.5 million for the first quarter of 2010, which excludes a $296,000 purchase accounting adjustment to record deferred revenues and backlog assumed in acquisitions at fair value. Non-GAAP income from operations was $8.3 million, compared to $9.1 million in the prior year period and representing a non-GAAP operating margin of 14%. Non-GAAP net income for the period was $5.2 million, or $0.12 per diluted share, compared to $6.7 million, or $0.15 per diluted share, in the first quarter of 2009.
The attached table presents a reconciliation of GAAP to non-GAAP revenues, income from operations and net income and net income per share applicable to common stockholders for the three months ended March 31, 2009 and 2010. Non-GAAP results exclude the impact of stock-based compensation expense, amortization of intangible assets, the effects of purchase accounting adjustments to record deferred revenues and backlog assumed in acquisitions at fair value.
Total cash, cash equivalents and investments were $129.7 million at the end of the first quarter, a decrease of $5.8 million from $135.5 million at the end of the prior quarter. The decrease in cash was driven by $26.0 million in cash used to repurchase shares of the company's stock and $3.0 million in capital spending which was partially offset by $23.4 million in cash flow from operations. Total deferred revenues were $110.4 million at the end of the quarter, up from $98.4 million at the end of the prior quarter and $95.8 million at the end of the first quarter of 2009.
SOURCE Phase Forward